A creditor may make a demand as provided in this chapter that a secured party or lienholder file a third-party claim to personal property that has been levied upon under a writ of attachment or a writ of execution.
Third-party Claims and Related ProceduresCreditor’s Demand for Third-party Claim by Secured Party Or Lienholder
Section § 720.510
If someone is owed money and their debtor's property has been taken by court order, the creditor can ask the person with a security interest or lien on that property to make a claim saying it's theirs. This helps sort out who actually has rights to the property.
creditor demand secured party lienholder
Section § 720.520
This law section explains the process that must be followed when a creditor wants to make a demand related to the claim of a third party who has a security interest or lien after a levy on personal property. The creditor must file the demand and a copy with the levying officer before the property is sold or money from it is given to the creditor. The levying officer must quickly serve this demand to the secured party or lienholder, and then confirm the service through a certificate. If another officer is closer, they can help with serving the demand, and their costs will be covered by the fees already paid for the initial levy.
(a)CA Civil Procedure Code § 720.520(a) The creditor’s demand for a third-party claim by the secured party or lienholder, together with a copy of the demand, shall be filed with the levying officer after levy on the personal property but before the levying officer sells the property or pays proceeds of collection to the creditor.
(b)CA Civil Procedure Code § 720.520(b) Promptly after the demand and a copy thereof are filed, the levying officer shall personally serve the demand on the secured party or lienholder. Service of the demand on the secured party or lienholder shall be attested by the certificate of the levying officer and the
certificate shall be filed in the action promptly after service.
(c)CA Civil Procedure Code § 720.520(c) The demand shall be served by the levying officer who levied on the property or by any other levying officer whose office is closer to the place of service. If service is made by another levying officer, such levying officer’s costs shall be paid out of the costs prepaid to the levying officer who levied on the property.
creditor's demand third-party claim secured party
Section § 720.530
This section outlines the requirements for what must be included in a demand when a third party claims property that has been seized for debt. The demand must list the names and addresses of both the secured party and the creditor, describe the seized property in detail, and state the date it was taken. Additionally, it must inform the secured party that if they don't make a claim within 30 days, they could lose priority over the property unless it's released. The demand also needs to say that if priorities are waived, the secured party might still get a share of any extra money from the property's sale.
The demand for a third-party claim served on a secured party or lienholder shall contain all of the following:
(a)CA Civil Procedure Code § 720.530(a) The name and address of the secured party or lienholder.
(b)CA Civil Procedure Code § 720.530(b) The name and address of the creditor.
(c)CA Civil Procedure Code § 720.530(c) A detailed description of the personal property levied upon and the date of levy.
(d)CA Civil Procedure Code § 720.530(d) A statement that if the secured party or lienholder does not file a third-party claim pursuant
to Chapter 3 (commencing with Section 720.210) within 30 days after service of the demand, the secured party or lienholder shall be deemed to have waived any priority the security interest or lien may have over the creditor’s lien on the property levied upon unless the property levied upon is released from the creditor’s lien.
(e)CA Civil Procedure Code § 720.530(e) A statement that if any priority of the security interest or lien is waived, the secured party or lienholder may have a right to share in any excess proceeds of an execution sale of the property as provided in Section 701.810.
third-party claim secured party lienholder
Section § 720.540
In California, when a demand is made to take action on personal property involved in a legal matter, the officer in charge can't release, sell, or handle the property differently for at least 30 days after informing any secured party or lienholder about the demand, unless another law says otherwise.
Except as otherwise provided by statute, the levying officer may not release, sell, or otherwise dispose of the personal property described in the demand before the expiration of 30 days after service of the demand on the secured party or lienholder.
levying officer personal property demand service
Section § 720.550
This law states that if someone who has a security interest or lien on personal property doesn't file a claim within 30 days of being asked, they lose their priority over a creditor's claim on that property. Essentially, the property can be used to satisfy the creditor's judgment without regard to the security interest or lien. However, if the creditor's lien is later released, the original security interest or lien gets its priority back.
(a)CA Civil Procedure Code § 720.550(a) If the secured party or lienholder does not file a third-party claim with the levying officer pursuant to Chapter 3 (commencing with Section 720. 210) within 30 days after service of the demand, the secured party or lienholder shall be deemed to have waived any priority the security interest or lien may have over the creditor’s lien on the personal property levied upon and the property may be applied toward the satisfaction of the judgment free of the security interest or lien.
(b)CA Civil Procedure Code § 720.550(b) If the secured party or lienholder is deemed to have waived any priority over the
creditor’s lien pursuant to subdivision (a) and the creditor’s lien on the personal property is released, the security interest or lien is restored to its former position of priority.
secured party lienholder third-party claim
